Ch. 1791..1800
Life at the Top Chapter 1791
“Although we have achieved brilliant results today, and it can even be said that J W has already established its advantage in the early stage, the biggest problem is that JW has no follow-up strength and means.”
Reuben pondered and said, “In fact, I can deduce some of Jasper’s thoughts. He intends to concentrate all his energy to break through this area because he has enough confidence that as long as the pustule is broken, then fester of the wound will be enough to make the United States suffer.
“This is also in line with our prediction that this will cause a financial crisis.
“The question is, what will the Federal
Reserve and United States government
think and do?”
Reuben furrowed his eyebrows even more and his tone became low. He continued, Going back to the question you asked me before, I can only say that my judgment o In the situation after the opening of the market tomorrow will be one word, and it is despair.
“The United States has the world’s top think tanks and experts. The financial rules they designed laid the foundation for the world after World War II. So, the United States would inevitably already have seen what we see, they will also see what we haven’t.
“After all, standing across from us is the most powerful country on the planet.”
Reuben took a deep breath before he looked at Tony with scorching eyes. He said, “So according to my judgment, after the market opens tomorrow, the Federal Reserve and the United States
government will definitely issue a series o f rescue measures in the shortest possible time. They might even join in the game themselves.
“They will probably stop everything at all costs before the pustule is completely ulcerated.”
Tony fell into a long silence after Reuben said that.
At this moment, the red telephone on Tony’s desk rang urgently.
“It’s the hotline from Swallow Capital,” Tony said.
Reuben instantly nodded to show that he understood. Then, he ended the video call without exchanging any pleasantries.
A hotline like this was top secret, so, no one else would be allowed to stay and listen in on it. Tony took a deep breath and lifted the phone steadily. He said, ” This is Tony Pratt.”
In the United States on the other end of the earth where this storm started.
A financial conference of the highest level was now reaching its climax.
Greenspaner, who had been in a state of high concentration for the whole day, was a little tired. He turned around and took the medicine for his cardiovascular illness from his assistant. After that, he swallowed it by lifting his head and taking a sip of water.
At this time, the noise in the meeting
room continued.
The ones who could step foot in here were the heads of the top capital companies on
Wall Street. They had amazing wealth in their hands that could easily set off financial turmoil in any country in the world.
This group of people was now attacking and accusing each other frantically like shrews in a farmer’s market. The reason was that their nest was overturned today.
“Enough.”
Greenspaner spoke slowly.
He was not loud, and he even sounded a bit hoarse because of exhaustion, but his voice seemed to contain magical powers which made the meeting room fall quiet i n an instant.
Greenspaner’s eyes swept across the scene, focusing momentarily on the faces of Soros, Layman’s chairman Dugg, and Benett, who had not spoken until now.
Life at the Top Chapter 1792
Then, he said, “The current situation is very critical. I have communicated with the team in Washington. We agreed that the financial turmoil triggered by the subprime market is inevitable.
“And this…”
“Was caused by that man from Somerland.”
Greenspaner’s tone sounded a little
complicated and angry at this time.
“This person will become the enemy of the United States.
“But!”
Greenspaner suddenly raised his voice. He said, “Every one of you here is not innocent. Couldn’t you see the risk in the subprime market?
“You have seen it a long time ago and you are even the instigators of this huge risk. However, you didn’t care, all you see are the huge profits and benefits. You didn’t expect this day to come so soon.
“What I’m saying is, since sacrifice is inevitable, then our enemy must pay the price.”
Greenspaner opened the folder in front of him and said in a deep voice, “Now as the chair of the Federal Reserve, I’m making the following decision.
“First, the Federal Reserve will inject capital into the two major investment banks, Mayland and Colossal, in the form of capital purchases to ease the huge pressure brought on by the debt caused by the subprime market.”
When the first decision was mentioned, Dugg could not sit still anymore. He suddenly opened his mouth and said anxiously, “What about Layman? Layman’s debt is the most serious among them. If we are forced to repay it, it will be enough to make Layman go bankrupt instantly. Are the Fed not going to consider injecting capital into Layman?”
Greenspaner seemed to have expected
Dugg to react like this. He was expressionless while the others looked at Dugg with pity.
They knew when Greenspaner said that
sacrifice was inevitable, that this sacrifice
would be Layman.
“Mr. Dugg.”
Janet, the vice-chair sitting next to Greenspaner, said, “The debt of Layman Investment Bank is too large, and the authority of the Federal Reserve is not unlimited. Moreover, this is the opinion given by the top strategy team in Washington, so I recommend that you seek your own solutions in the capital market.”
Dugg snapped furiously, “The capital market? You mean finding a buyer out there and selling Layman, right? Who would want to come up with tens of billions of dollars to save Layman right now?
“If you don’t inject capital into Layman, once Layman collapses, it will become the largest investment bank to go bankrupt in the history of the United States. You will b e the ones creating a black mark in the financial history of the United States!”
Janet said calmly, “Layman Investment Bank has total assets of 130 billion US Dollars, but 60% of the assets were used t o invest in the subprime market, and it’s the largest single investor in the United States subprime market.
“You have made at least 80 billion US Dollars from this market over the past ten years. According to our assessment, once the subprime market collapses, Layman’s debt will soar to more than 200 billion US Dollars.
“Either find private capital to buy
Layman, or go bankrupt. There is no other
way.”
Janet’s words caused Dugg to turn pale
and he fell back into his chair. He wanted to
o say something, but when he saw
Greenspaner’s cold gaze, he swallowed
his words..
Now, Greenspaner said slowly, “Second, the Federal Reserve will invest in the acquisition of all credit loan products in the subprime market, with a conversion rate of 0.35, which means the Federal Reserve will contribute 35 US Dollars to
purchase all debts of 100 US Dollars.
“For this reason, the Federal Reserve will prepare 300 billion US Dollars for the implementation of this plan. This money will enter the market immediately after the opening tomorrow.”
After Greenspaner said the second sentence, everyone in the room was shocked.
Although the 0.35 conversion rate was very unimpressive, everyone understood that this was the biggest compromise that the Fed could make.
After all, this money was equivalent to the Feds’ free use of the central bank to save the market. Since it was free, then you should take the largest amount you could.
Similarly, the bigwigs also understood why the Feds and Washington would
abandon Layman.
Suppose the Federal Reserve’s rescue plan used only 300 billion US Dollars in total. T o get Layman out of this quagmire, they would have to spend 200 billion US Dollars on Layman’s debt alone, so of course, it would be Layman that got the chops.
Everyone looked at Dugg with more sympathy now.
They knew very well that, if everything went smoothly, Dugg’s Layman would probably have no portion of the 300 billion US Dollars..
Greenspaner saw through everyone yet he was still expressionless. After that, he meticulously announced the third piece of news.
“The third decision is also the most important one. From now on, the Federal Reserve will conduct a comprehensive review of all credit housing loans across the federal government and, in conjunction with the Securities Regulatory and taxation and finance departments, we will thoroughly clean up all illegal lending activities.”
As he said this, Greenspaner’s eyes swept over everyone in the room maliciously and he continued softly, “Everyone, don’t do any wishful thinking. All the above decisions have been approved by the highest authority so there is no room for rebuttal and bargaining.”
After closing the document and placing his palm on the top of it, Greenspaner said calmly, “These are the measures currently prepared by the Federal Reserve. I hope you can understand that the current bad situation is not caused by Jasper Laine, but by the economic system itself.
“Therefore, more of us should look for the reasons in ourselves. You all know better than anyone who the real culprit of the overheating economy and the disorderly rise in real estate values is.
“That is all. Dismissed.”
After he finished speaking, Greenspaner’s eyes fell on Benett and he said faintly, “M r. Benett, please stay. The others can leave.”
Despite having many doubts and feelings o f dissatisfaction, Greenspaner had already said this, hence no one dared to provoke the authority of the pope of the US Dollars on such an occasion. Eventually, they stood up quietly and left.
After everyone left, only Greenspaner and
Benett remained in the meeting room.
Benett, who was slightly chubby, seemed even more easy-going in front of the lean and serious Greenspaner. He smiled and said, “Do you have anything you want to say to me that you can’t say in front of them since you kept me here?”
Greenspaner nodded and said, “Mr. Benett, I know that the investment company and fund under your name has just dumped 2 billion US Dollars in assets i In the subprime market.”
Benett nodded and said, “Yes, and I was the one who gave the order. The chaos this time made me realize that the subprime market of the United States has serious problems and I need to be responsible with my investors.”
Greenspaner nodded and said, “Yes,
that’s why I understand your decision very well.”
“Then, can I go now?” Benett asked.
Greenspaner ignored Benett and continued asking, “Mr. Benett, I need you to give me some advice. Do you think that the situation in the subprime market is beyond salvation?”
Life at the Top Chapter 1794
“Yes.”
Benett’s answer was so decisive that Greenspaner had no choice but to accept it.
“The real estate industry in the United States has continued to rise for the past 10 years. Over the past 10 years, too many economic derivatives have emerged. Personal credit contracts being sold as futures in the subprime market is just one of the most represented ones, but it is not everything.
“The root of the problem is that the real
estate industry bubble in the United States
has overheated. Even without Jasper, it
might have burst 5 or 8 years later.
“But sooner or later, it would have broken down, be it now, 5 years, 8 years, or even 10 years later.
“Just before it bursts, it would appear that everyone can make money in this industry, but economic laws tell us that every bubble will burst one day, and there won’t be an industry that makes endless profits.
“So, its situation is difficult to recover
from.”
Benett’s words made Greenspaner look.
depressed. He said, “You have the same
views as us. It seems that this is indeed a
failure on my part.”
“You served for two consecutive terms as chair of the Central Bank. During these two terms, you sent away 2 heads of office and 3 heads of finance. The determination of economic policies is based on local conditions and timing, so it’s not your fault.” Benett comforted.
Greenspaner suddenly spoke after he smiled at Benett, “Thank you for comforting me… As far as I know, your relationship with Jasper Laine is very good, isn’t it?”
Benett replied calmly, “Not really, but I admire him.”
Greenspaner interlaced his fingers and said softly, “Mr. Benett, forgive me for m y frankness and straightforwardness. You have a very special position in the eyes of investors across the country, so I hope you can do something beneficial to the
market at the right time so market confidence at least won’t crumble so fast.”
Benett frowned. This undoubtedly meant that Greenspaner was asking him to sacrifice the reputation and fame he had worked so hard to build over his entire life. Just as he was about to refuse, Greenspaner said, “In exchange, I will nominate you to serve as vice-chair of the
Federal.
serve after I step down, which is
s Janet’s current position.”
These words immediately caused Benett t o swallow his initial refusal.
Greenspaner continued, “You know, the United States is a free country. The people are free, we have human rights, and capital is also free, but there is a limit to freedom. While we are free, we also need t o be bound by a system, and this system is the foundation to protect the interests of the people of the United States from harm.
“So even if you admire Jasper, you can’t let him completely destroy our system, otherwise it will be difficult for you and m e to give the people an explanation, right?”
These words dissipated the last bit of
struggle left in Benett.
“I understand,” Benett said softly.
With a chuckle, Greenspaner stood up, walked to Benett, and stretched out his hand. He said, “Then I’ll wish us a happy cooperation tomorrow.”
Holding Greenspaner’s hand, Benett hesitated for a moment. He replied, “The subprime market will be reopened in another ten hours. Can you tell me how confident you are of completely defeating Jasper?”
Greenspaner chuckled and said, “As long a s we want to destroy someone on this planet, that person would not be able to survive. After all, we are the United States, and we have the most powerful military and economic power on this planet, right?”
Life at the Top Chapter 1795
Upon hearing Greenspaner’s seemingly carefree yet extremely overbearing statement, Benett nodded slowly.
Indeed, on this planet, as long as the United States government was determined to do something, no country would be able to stop them, let alone an individual.
“Also, are you seriously going to abandon Layman?”
Facing Benett’s question, Greenspaner smiled and asked back, “Are you interested in Layman, Mr. Benett?”
Shaking his head, Benett said, “You know, my investment style is to focus on long-term holding of a company, and I only hold their stocks, never interfering i In the company’s operation and management. Layman’s performance or internal management seems very problematic to me, and I would not consider holding stocks in such an investment bank.”
Greenspaner said with a shrug, “The fall o
f Layman is nothing. There will never be a company in the capital market that won’t go bankrupt. It simply does not exist. Since they caused the problem themselves, they have to solve it by themselves. The Federal Reserve or the taxpayers will not take out so much. money to rescue a company that cannot b e saved.
“This is the consensus that everyone has come to, so now Layman is either waiting for bankruptcy or must find a capital injection before then. Aside from those two options, there is no other way.”
“In other words, the Freemasons also approved this.”
“That’s right.”
Greenspaner gave Benett an affirmative answer.
How did investment banks such as Colossal, Mayland, Layman, and Morgan get so big? They must be supported by capital and political power, and this support was derived from one of the most powerful and ancient underground
organizations in the United States.
The Freemasons.
Behind almost all large consortia that could be mentioned was the shadow of this organization.
However, the world knew too little about i t. Many people only knew its name, but did not know the members, organization
structure, and mode of operation. This was another system of United States society that ordinary people might not be
exposed to throughout their entire lives.
They would never know that everything from something big like a car or a house t o something small like sundries and food was actually deeply influenced by this organization.
Because of the strong national power of the United States, the influence of this organization radiated to many countries
and industries around the world.
Obviously, Benett knew something about this.
“The real owner of Layman has already.
taken a default attitude towards this, and a s early as a few years ago, he and his family had begun to withdraw Layman’s profits and funds. What is left now is just a n empty shell full of debts.”
“I understand.”
Benett nodded calmly.
At this moment, Dugg, who had just left the meeting, sat in the car with a blank expression on his face. His face looked
terrifyingly gloomy.
“Sir, shall we go directly to the company?” The driver turned his head and asked.
“Just drive around here. Don’t go back to the company.”
After Dugg gave his order, he lifted the partition between the backseat and the front seat. Then, he took out his phone to make a call.
After a while, the call connected.
“My old friend, do you have something important to discuss since you’re calling me at this time?”
The hearty voice on the phone eased Dugg’s mood. He said, “Layman now needs your asset management company t o help contact investors for a capital injection.”
The person on the other end of the phone
was visibly taken aback, and then he said,
“Did the subprime market cause problems to Layman’s capital chain?”
“Old chap, you know, many things are very complicated, and I can’t explain them to you one by one, but now I am really looking for someone to fund Layman,” Dugg said tiredly.
“I understand what you mean, but how
much money do you need?”
Dugg thought for a while and said with great difficulty, “At least 100 billion US Dollars.”
Even if he could not see the other person’s
face through the phone, Dugg could imagine how interesting the other
person’s expression was at this time. “My God.”
After a long time of silence, an exclamation came from the other end of the phone.
“100 billion. If I am able to gather this amount, I really hope to help you facilitate this transaction. After all, aside from the fact that I can earn at least 1 billion US Dollars in commissions and consultation fees, this deal alone will break the record for the largest single transaction in history. My asset management company and I will also become famous after this.
“But…”
The person on the phone changed the topic and said in a regretful tone, “Friend, you’re asking for 100 billion US Dollars. Judging from the current situation, it is almost impossible for you to find someone to inject capital. Layman is in too dangerous a position, you know what I mean? Who would risk losing such a large sum of money to buy Layman?”
Dugg clenched his fists. Although he was fuming, his tone became humbler. ”
Jamie, right now, you’re the only one who
can help me and Layman. At least help me release the news about this matter, I can’t just watch Layman collapse in front of m
e.”
After a long silence, Jamie said, “I know, I will try to help you send a takeover offer t o several large consortia, but whether it is successful or not depends on the other party. Also, what did the Federal Reserve say?”
“Do you think I’d come to you if it’s
something good?” Dugg asked
rhetorically.
Jamie smiled bitterly. “Well, I will tell you as soon as I have any news.”
Layman’s Dugg was not the only one in trouble at this time, even Colossal Investments, which had been offered a guarantee by the Federal Reserve, was not having a good time.
After coming out of the meeting room, Paulson returned to his office in the shortest possible time.
“Start a video call request with Celine Maynard, the president of the Terra regional branch.”
After ordering his secretary, the video call started within a few minutes.
Looking at the sleepy Celine, who was in
her pajamas on the screen, Paulson
smiled and said, “Celine, I’m sorry to
disturb you at this time.”
Celine said helplessly, “Sir, the
investment bank pays me my salary, so I a
m ready to be on standby 24 hours a day.
Please tell me what I need to do.”
Paulson considered for a while and then said, “First, end all cooperation with JW and personal relations with Jasper Laine.
Cut all ties with him.
“Secondly, the top management has now decided that they will participate in the Feds’ 300 billion US Dollar rescue plan at the market opening tomorrow. From this moment on, JW and Jasper Laine are business rivals of our investment banks. I hope you can understand this from a personal and professional perspective.
“Finally, prepare for the acquisition of
high-quality assets belonging to JW.”
Life at the Top Chapter 1796
The three commands Paulson were each
more shocking than the last.
Celine was a very clever person, so she reacted immediately. Colossal Investments, or rather, the entire United States Government and the Federal Reserve, had already taken measures to deal with the upcoming collapse of the subprime market.
However, it was still closing time, so it had not been announced yet, but Celine had already learned one specific piece of news regarding this.
The Federal Reserve would invest at least
300 billion US Dollars to rescue the
market.
As a dealer of shorts, Jasper and the JW Foundation under his name were definitely the thorn in the eye of the 300 billion US Dollar rescue plan this time, and he would also be the first target to be eradicated.
“Sir, am I right to assume that since the investment bank has already made the decision and even asked me to prepare to acquire JW’s high-quality assets, that the investment bank doesn’t think that Jasper has any possibility of a comeback?”
Facing Celine’s question, Paulson asked
calmly, “Make a comeback? What do you
think?”
Celine was speechless.
Indeed, when the Federal Reserve
personally came into the game, it was no
longer an even playing field.
How would they fight this?
Even the chips in your hand were made by
others, so how were you going to continue
playing?
“I know that you and Jasper have a good
personal relationship and there are even some other private collaborations between the two of you, but these are not important. I hope you can understand that you should make the most correct choice based on the current situation.
“We are very aware that the Somerland government is supporting Jasper from behind, but what bargaining chips and qualifications do the Somerland government have that they can hope to fight the United States government?
“Once the situation escalates again and when the conflict requires a victim to serve as a buffer, who do you think the victim will be? Who else is more suitable than Jasper and his JW?”
Paulson’s words made Celine frown.
“Sir, do you mean that the Somerland government is likely to regard Jasper as a n abandoned pawn?”
Paulson replied, “It may not be the case right now because Jasper still holds some value, but it’s all about interests whether i t is within a government or a company. However, the government considers the national interest, while the company considers the company’s interest. Although their interests and needs are different, the essence of their operations are the same.
“When the benefits of giving up Jasper
outweigh the benefits that Jasper can
bring, what will Somerland choose?
“I think Jasper should know this too. National interests are above all else, and this is especially important in Somerland. It is even possible that Jasper has also made plans to sacrifice himself to accomplish a bigger goal.”
Celine shook her head decisively and said,
“Impossible, I know him, and he is not
such a person.”
Paulson said with a grin, “This has nothing to do with you or me. In short, if conflicts and contradictions continue to escalate, the only ones who will eventually come out to clean up the mess are the Somerland and United States government. Any other individual or company will not be qualified to handle this. At that time, what will happen if the United States government needs to quell the anger?
“And what will happen when Somerland
needs to get more benefits from the
United States?
“On the chessboard that is the subprime market, Jasper and Wall Street are opponents sitting on opposite sides of the board, but in terms of the overall game, Jasper and Wall Street are actually chess pieces on a larger board. The players on the board are the Somerland government and the United States government.”
Celine pursed her lips and said nothing.
“Okay, Miss Maynard, my order has been issued, is there anything else you don’t understand?” Paulson asked.
Life at the Top Chapter 1797
Celine hesitated for a while, then asked, ” Are the things you just told me trade secrets?”
“If you ask me as a subordinate, then yes. I f you ask me as my niece, then I can only tell you, please make the right choice.”
After Paulson said these meaningful words, he ended the video call.
Meanwhile, Celine sat in her study for a long time, spaced out.
More than half an hour later, Celine called Jasper directly.
She made a choice, at least the one she thought was the right choice.
Jasper had just fallen asleep when he received Celine’s call.
However, he had long been accustomed to being called back to work by an emergency call at any time, so Jasper regained his vigor as soon as he got on the call.
He glanced at Wendy, who was sleeping
next to him, and stood up lightly. After walking out of the bedroom, he said to the phone. “It’s me.”
On the other end of the phone, Celine explained to him the whole situation as briefly as she could. Of course, she did not tell him Paulson’s theory of the chess player and abandoned pawn.
It was not that she had concealed something, but she was very clear that Jasper did not need this news to distract him at this time. No matter what the situation was, the direction of the future depended on Jasper’s performance in this vital situation.
“300 billion? The Federal Reserve is so generous.” Jasper did not panic after he learned of the news.
After all, to him, the Federal Reserve would have joined the game sooner or later. He even felt that this was not enough.
One had to know that when the subprime mortgage crisis broke out in his last life, the United States lost more than tens of trillions of dollars. From this, the money the Feds injected into investment banks of large institutions to save the market alone exceeded 800 billion.
The money was not completely returned t o the Federal Reserve for more than ten years, even until the point at which Jasper was reincarnated.
This time, although Jasper detonated the subprime mortgage crisis ahead of schedule, making it less harmful than the original because the accumulation was reduced by six to seven years, the loopholes in the United States financial system were still a black hole of funds, and the United States would not smooth it out so easily without paying a heavy price.
“From now on, you will not get any help i In the West, and no one will cooperate with you at this time. Even my family will wait and see things out before acting, so your situation is not favourable,” Celine said.
“I know, this is reasonable.”
Jasper said calmly.
“But won’t you get into trouble for revealing such important news to me?”
“Do you think I’ll get into trouble for leaking trade secrets?” Celine asked bluntly.
“It’s fine, you can just leave. Before this, I told you if you can’t continue to work in Colossal, you can come to find me. I can give you a position here,” Jasper said half jokingly.
“I told you I only worked for venture capital, and you don’t even have a bank. Should I go there to be your secretary?” Celine said with a chuckle.
“Who says I don’t have a bank?”
Life at the Top Chapter 1798
“What do you mean?”
Celine felt energetic all of a sudden.
It was not the same as him joking like before. This time, she could feel that Jasper seemed to really have such thoughts and ideas.
“Do you really plan to open a bank? You know private capital can’t open a bank in Somerland. Even some commercial banks have a deep background and historical origin, as well as the agreement that state -owned enterprises will occupy the seat of the majority shareholder.
“Even so, opening a bank in Somerland is definitely not an easy task.”
When Jasper saw how excited Celine was about this topic, he continued even when h e did not originally intend to discuss it. further, “Who said I’m going to open a traditional bank? If I want to open a bank, I’ll open a neobank. I won’t absorb people’s savings, nor will I set up outlets o r fight for depositors with other state owned banks, but aside from that, I will d o everything that other banks do and nothing less.
“Of course, these are still drafts that only exist in my mind for the time being. If I a m not finished after this whole kerfuffle, I don’t think there will be any problems asking Swallow Capital for this. If I am finished, then this will just be hot air.”
Yes, the prototype of the bank in Jasper’s
mind was the two banks in later.
generations, Theybank and Youbank.
Now, he had Terizone or Abbylon in his hands, so Jasper had absolutely no reason to miss out on neobanks, a super cash cow that could utterly defeat the entire traditional banking industry, making the traditional banking industry run to mommy Central Bank, crying and screaming.
The most important thing about Neobank’s establishment was not how much profits it could make, but its terrifying capital pool. Once it had a trillion Somer Dollars in the capital pool, then the daily interest accumulated by the capital pool would be an astronomical figure. Moreover, the advantages it brought would solve JW’s cash flow problem once and for all.
However, these were things for the future.
If he lost this game, everything would be for naught.
“How can I help you?” Celine asked.
Jasper smiled and said, “Just follow the orders of Mr. Paulson..
“In fact, when Mr. Paulson conveyed this t
o you, he had already expected that you
would leak the ‘trade secret’, but he didn’t
care. Instead, he was happy to do such a
favor at little cost because even if he
doesn’t tell us now, we would have still
found out when the market opens
tomorrow and it wouldn’t affect the
overall situation.
“But you still have to cooperate with
matters that are befitting of your position
because I believe that there are countless
pairs of eyes staring at you even inside the
investment bank.”
Jasper said mildly, “I will take care of everything else, so don’t worry.”
Celine pressed her lips together gently
and said, “You have to be careful. Think
carefully before you act.”
“Don’t worry, I am not the newbie who has only just started doing business,” Jasper said with a laugh.
After he hung up the phone, Jasper looked at the morning light that was gradually appearing in the sky outside the window. Then, he pushed open the window and the fresh air poured into the room. After taking a deep breath, the cold air entered his lungs, invigorating him.
A new day had started.
After sitting in the study for a while, Jasper went back to take another four to five-hour nap. This time, he was finally not woken up by his phone.
Life at the Top Chapter 1799
After waking up, he realized that Wendy. had taken his phone to prevent anything. from disturbing him.
Jasper was not angry about this either because Wendy did this for his own good. I If there were really important updates, there were still many ways to contact him.
After eating, Jasper bucked up and returned to the company.
As soon as he arrived in the command room, Jasper was overwhelmed by countless pieces of news.
“Mr. Laine, the rise and fall of the subprime market yesterday has greatly affected the global economic market. The real estate sector and trust assets of major trading centers around the world have shrunk in different proportions, but there. is one exception.”
Jasper, who listened to Jake’s report while walking, smiled and said, “It’s Somerland, right?”
“Mr. Laine, you are so amazing,” Jake said with a thumbs up.
Jasper grinned and continued, “Our domestic real estate industry has only just started. In the future, it will take on the most important industries and tools to stimulate domestic demand and GDP growth. This is already certain.
“Throughout the development history of all developed countries both domestically and abroad, the real estate industry has played an important role in the stage of economic take-off. Otherwise, why would people call it one of the troikas of the national economy?
“It hasn’t been long since the domestic market started, and it is far from being saturated. Moreover, the urbanization process has been written into the government’s five-year plan. No one can. override this and no matter how the foreign situation changes, it is impossible to affect the food on the tables of the people in our country.”
Jasper remembered that the United States
subprime mortgage crisis was triggered by
real estate boom in 2007 and 2008. At that time, it was the hottest time for domestic real estate, but the domestic real estate tycoons were not even slightly bothered. Therefore, naturally, there would be no difference in this life.
“Tell me some other useful news,” Jasper
said.
The Federal Reserve has just issued an announcement stating that it would comprehensively review all credit loans and real estate loan products within the United States, tighten the limits of these two loans, and impose corporate sanctions on some violations.”
“Well, this is a good thing, but I’m afraid this bunch of United States capitalists might become bankrupt after they’re fined. However, it’s not a big problem since they are the ones who caused this problem in the first place and it’s time to make them pay. Otherwise, where will there be money to save the market?”
“Besides this, the Federal Reserve announced their second interest rate hike
this fiscal year. This time, the rate of the hike is even greater than before even
though it has only been less than half at month since the first interest rate hike. This has also broken previous records on the matter.” Jake continued to report.
Jasper paused. “This is also reasonable. The next mortgage crisis is right in front of f them, and it will break out at any time. O f course, the Federal Reserve must make everyone’s deposits become hot money. If not, the pressure on the banks will be even bigger if everyone simply keeps their money in storage.
“At the same time, the rolling of social
capital will also offset the negative impact
of some financial turmoil, which is
complementary to the policy of raising
interest rates,” Jasper continued.
The moment Jasper finished talking, Baz hurried over and said with a serious look, “Mr. Laine, the latest news states that the Federal Reserve will make an acquisition o f debt in the subprime market at a discount rate of 0.35. It will be executed immediately after the market opens today.”
“How much is the amount?” Jake asked
keenly.
“I don’t know yet.” Baz looked awkward.
“The Feds are going to rescue the
market,” Jake said decisively.
“300 billion US Dollars,” Jasper said softly. “And it will only be more, not less. They will be ready to invest more money a t any time.”
Life at the Top Chapter 1800
Jake and Baz looked at each other. Then, Jake said softly, “Mr. Laine, we might be under great pressure if this is the case.”.
“It’s more than that.”
Jasper sighed and said, “Once there’s a flood, everything will get out of control.”
Although they had the palace guards from the SBS Bank to help them, there was a basic concept that should not be
misunderstood.
The palace guards would never be able to defeat the Federal Reserve.
Therefore, Jasper needed to know how and where to use the palace guards.
If he did not use it well, he would be
causing trouble for the palace guards for nothing. If he used it well, then it would b e a miraculous trick.
However, Jasper had his own plans for this.
“Let’s wait until the market opens.” The time for the market to open finally came as everyone attentively watched on.
As soon as the market opened, thanks to the rescue measures of the Federal Reserve, the points in the subprime market began to stabilize and did not continue the previous day’s plunge.
It was already great news for the market if it did not fall.
Because based on the performance of the previous day, the United States subprime market was already teetering on the brink collapse, and now the Federal Reserve’s participation had imposed a backstop for the market abruptly, which was the 0.35 discount rate. In layman’s terms, the maximum loss was 35 US Dollars for every 100 US Dollars.
Although it was still a terrifying loss from a numerical point of view, it was necessary to know that the trading rules o f the subprime market allowed people to: directly liquidate the position.
Compared with the account being emptied directly, the policy of providing 300 billion US Dollars to act as a backstop to ensure that the loss would only amount to 65% of the actual value was already regarded as cheating.
The most important thing was attitude.
The Federal Reserve rescuing the market nmeant that the United States government would not allow the subprime market to collapse.
Therefore, under a trial of strength of various factors, the current subprime market had become the most sophisticated and complex trading market in the world.
It was a butterfly effect. Hence, Jasper and Wall Street capital did not have much.
conflict after this,
However, after such a stalemate, the points in the subprime market began to
slowly rise after they had stabilized.
Once it recovered, even if it was only a 10
point gap, it would also bring unparalleled
long pressure on Jasper’s huge capital market.
“Mr. Laine, we are holding too many positions now. According to the current trend, we will lose more than 70 million U S Dollars every time the market rises by 5 o points, and once the snowball effect occurs, we will be faced with the risk of liquidation if there is a wave of continuous rise.”
Baz voiced the concerns of everyone on
the team while Jasper sat behind the desk i
In the command room, silently watching
the market without speaking.
“Within 15 minutes, the SBS Bank’s
palace guards will help us increase short
term pressure on the market. Your task is t
o cooperate with them here.”
Jasper took out a laser pointer and pointed
at a node on the screen. He said, “We
must give the market an illusion, and our
goal is to defend this point.”
“Ok, I see.”
Baz nodded. Then, suddenly he realized
something. “Mr. Laine, are you not going to be here?”
Jasper looked at the time and said, “I have an important interview to go to, so during the trading hours in the morning, everything will depend on you.
“I’ve told you the layout of the plan and the palace guards of the SBS Bank will also help. I have already told Harbor City about this, so I think there won’t be any problems defending it.”
Jasper stood up and patted Baz on the shoulder. Then, he said in a deep voice, ” Call me only if there is an emergency.”